Money Is Created Through the Banking Processes of Taking Deposits

question 19

Multiple Choice

Money is created through the banking processes of taking deposits and making loans if

• A)the banks require individual depositors to hold "reserves."
• B)the banks require individual borrowers to hold "reserves."
• C)paper deposit receipts are not acceptable means of payment.
• D)paper deposit receipts are accepted as a means of payment.

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Definitions:

Consumer Sovereignty

The principle that consumers' preferences and choices dictate the production of goods and services in a market.

McSalad Shaker

A product line by McDonald's offering salads in a container designed for easy mixing of ingredients by shaking.

McDonald's

A global fast-food company recognized for its burgers, fries, and breakfast items, known as a pioneer in the quick service restaurant industry.

Donald Boudreaux

An American economist, author, and professor known for his work on free market economics.